11. Provisions, Contingent liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

2(D) Rights, preferences and restrictions attached to each class of shares:

Equity Shares - The Company has one class of equity shares having a par value of Rs. 10/- each per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2(e) During the financial year ended March 31, 2024, the Company has completed its Initial Public Offering (IPO) of 11,42,400 equity shares of face value of Rs. 10 each at an issue price of Rs. 100 per equity shares, consisting of fresh issue of 9,20,000 equity shares and an offer for sale of 2,22,400 equity shares by the selling shareholders on June 19, 2023. The fresh issue of 9,20,000 equity shares of face value of Rs. 10 each aggregating to Rs. 92 lakh and issued at a premium of Rs. 90 per equity share aggregating to 828 lakh.

2(f) The Company has neither issued any shares for consideration other than cash nor has there been any buyback of shares during the five years immediately preceeding March 31, 2024.

3(a) Nature & Purpose of Reserves

(i) Securities premium reserve

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(ii) General reserve

General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. This reserve is a distributable reserve.

(iii) Surplus/(deficit) in the statement of profit and loss

Retained earnings pertain to the accumulated earnings / (losses) made by the Company over the years.

7 (a) Cash credit from bank is sanctioned under CGTMSE Shceme & secured by;

(i) charge over the book debts, unencumbered movable fixed assets & partly by Govt Guarantee;

(ii) personal guarantee of Shri Suresh Sharma, Sheela Sharma & Vikas Sharma

(iii) The rate of interest on cash credit from bank is REPO RATE 4.25% i.e. 10.75% p.a. as at March 31, 2024).

7 (b) Loan from related party amounting Rs. 52.60 lakh is interest free and it is repayable on demand. (March 31, 2023: Loan from related parties amounting Rs. 24.48 lakh is interest free and it is repayable on demand.)

Note 23 Corporate Socia l Responsibility (CSR)

Section 135 of the Companies Act, 2013 and Rules made thereunder prescribe that every Company having a net worth of Rs. 500 crore or more, or turnover of Rs. 1,000 crore or more or a net profit of Rs. 5 crore or more during any preceding financial year shall ensure that the Company spends, in every financial year, at least 2% of the average net profits earned during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy. Since the Company has not exceeded the limit as spcified above during any of the preceeding 3 years, provisoins of Section 135 of the Companies Act, 2013 is not applicable to the Company during current fiscal year.

Note 24 The Company has completed its Initial Public Offering (IPO) of 11,42,400 equity shares of face value of Rs. 10 each at an issue price of Rs. 100 per equity shares, consisting of fresh issue of 9,20,000 equity shares and an offer for sale of 2,22,400 equity shares by the selling shareholders on. The equity shares of the Company were listed on National Stock Exchange of India Limited ('NSE') on June 22, 2023.

Note 26 Segment reporting

The Company primarily operates in one segment which comprises of waste management including Municipal Solid Waste, Bio

medical, Industrial, slaughter house waste and agricultural waste identified in accordance with principle enunciated in Accounting Standard AS-17, Segment Reporting. Hence, separate business segment information is not applicable.

Note 27 Additional Regulatory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Comapany has not revalued any of its Property, Plant and Equipment and intangible assets during the financial year.

(iii) The Company has not granted Loans or Advances to its Promoters, Directors, KMPs and RelatedParties during the current financial year.

(iv) There is Nil Capital Work in Progress.

(v) There is Nil Intangible assets under development.

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(viii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(ix) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) Book Debts statements submitted to banks are in agreement with book of accounts where borrowings have been availed based on security of current asstes except for deductions.

(xii) There are no transactions or outstanding balances with struck off companies as at and for the years ended 31 March 2024 and 31 March 2023.

(xiii) The company has not advanced or loaned or invested funds nor received funds with the understanding that the same shall be lent / received to/from any other entity.

Note 28 The figures for the previous year have been regrouped/ rearranged wherever necessary to conform to the current year's classification in order to comply with the requirements of the amended schedule III to the Companies Act, 2013.

This is a summary of significant accounting policies and other explanatory information referred to in our report of even date

For M/s B Shroff & Co. For and on behalf of the Board of Directors

Chartered Accountants Firm Reg. No. 006514W

Sd/- Sd/-

Sd/- Kamlesh Sharma Amol Tirale

CA Manan Agrawal Managing Director CFO

Partner DIN: 1845899

M.No.418874

UDIN - 24418874BKFK1T5528

Place: Nagpur Date : May 28, 2024